International Construction Law Review
EMPLOYER’S FAILURE TO MAKE PAYMENT TO CONTRACTOR— A STUDY OF CONSTRUCTION CONTRACTS UNDER EGYPTIAN CIVIL LAW
TAREK HUSSEIN HAMED
SHERIF MOSTAFA EL HAGGAN
NABIL ABDEL BADEI YEHIA
Ph D, Faculty of Engineering, Cairo University
Ph D, Sheffield University, FCI Arb, London, CEDR Accredited Mediator, London, DRBF Country Representative for Egypt
Professor of Concrete Structures, Faculty of Engineering, Cairo University
ABSTRACT1
Article 656 of the Egyptian Civil Code details the obligation of an employer to make payment to a contractor of the contract price in construction contracts.
We discuss the risk of an employer’s failure to make payment to a contractor under the Egyptian Civil Code, and highlight the need for amendment of the Code.
The finding of this research is that the relevant rules of the Egyptian Civil Code do not adequately deal with the said risk and that, therefore, construction contracts under the Egyptian Civil Code need to include additional provisions dealing with such risk. Suggested provisions are provided at the conclusion of this article.
THE STATUTORY BACKGROUND IN EGYPT
Building and construction contracts do not have separate rules under the Egyptian Civil Code; rather, there are certain rules that apply to all hiring-of-work contracts including building and construction contracts.
Building and construction contracts, however, differ from other hiring-of-work contracts in many aspects. One of these differences is that, under building and construction contracts, the costs and expenses to execute the works as well as the time for completion thereof are much greater than
Pt 4]Employer’s Failure to Pay Contractor—Egypt
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